Ryder System, Inc. (NYSE:R) Q4 2023 Earnings Call Transcript
Ryder System, Inc. (NYSE:R) Q4 2023 Earnings Call Transcript February 14, 2024
Ryder System, Inc. beats earnings expectations. Reported EPS is $2.95, expectations were $2.75. Ryder System, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good morning, and welcome to the Ryder System Fourth Quarter 2023 Earnings Release Conference Call. All lines are in a listen-only mode until after the presentation. Today's call is being recorded. If you have any objections, please disconnect at this time. I would now like to introduce Ms. Calene Candela, Vice President, Investor Relations for Ryder. Ms. Candela, you may begin.
Calene Candela: Thank you. Good morning, and welcome to Ryder's Fourth Quarter 2023 Earnings Conference Call. I'd like to remind you that during this presentation, you'll hear some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market, political and regulatory factors. More detailed information about these factors and a reconciliation of each non-GAAP financial measure to the nearest GAAP measure is contained in this morning's earnings release, earnings call presentation and in Ryder's filings with the Securities and Exchange Commission, which are available on Ryder's website.
Presenting on today's call are Robert Sanchez, Chairman and Chief Executive Officer, and John Diez, Executive Vice President and Chief Financial Officer. Additionally, Tom Haven, President of Fleet Management Solutions, and Steve Sensing, President of Supply Chain Solutions and Dedicated Transportation Solutions, are on the call today and available for questions following the presentation. At this time, I'll turn the call over to Robert.
Robert Sanchez: Good morning, everyone, and thanks for joining us. I'm extremely proud of our team for delivering strong results again in the fourth quarter and throughout 2023. Our operating performance continues to demonstrate that the transformative changes we've made to derisk our business model, enhance returns and free cash flow and drive long-term profitable growth have significantly increased the earnings and return profile of the business versus prior cycles. I'll begin today's call by sharing some key insights from 2023 and providing you with a strategic update. John will then take you through our fourth quarter results, which exceeded our expectations again, reflecting better performance in our Supply Chain automotive business, lower truck maintenance costs and a lower tax rate, partially offset by volumes in omnichannel retail and rental demand.
I'll then review our 2024 outlook and discuss how we are positioning the business for the cycle upturn. Let's turn to Slide 4. In 2023, we delivered strong returns during a freight cycle downturn and as conditions in used vehicle sales and rental weakened throughout the year. Despite this backdrop, we generated ROE of 19%, which is in line with our target range of high teens over the cycle and reflects the strength of our contractual business and the actions we've taken to improve the return profile of our business. Comparable EPS of $12.95 was above our initial full year forecast, reflecting better-than-expected performance in used vehicle sales, lower truck maintenance costs, improved results in our supply chain automotive business and a lower tax rate.
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